FX.co ★ Yen Hovers Near 40-Year Lows

The Japanese yen hovered around 163.7 per dollar on Tuesday, remaining close to its weakest level in four decades as the US currency stayed firm amid speculation that the Federal Reserve could raise interest rates as early as this week. In contrast, the Bank of Japan is widely expected to leave its policy rate unchanged at Friday’s meeting, while signaling that further rate hikes remain possible as it seeks to stem the yen’s decline. Verbal intervention by Japanese officials has so far had little effect in supporting the currency, and the BOJ has remained noncommittal about the pace and timing of any future tightening. The yen also stayed under pressure even after President Donald Trump said the US was engaged in “good talks” with Iran to end the conflict in the Middle East, a development that pushed oil prices lower and eased concerns about inflation and tighter monetary policy.